【We Chinese in America Media Editor Tang Zhao, April 5, 2022】 According to real estate analysis, last year has been the fastest year for soaring US housing prices in 45 years, and the housing market in the San Francisco Bay Area and San Diego are in short supply. (A Soaring real estate value images from www.Alamy.com and Daily Freeman)

According to real estate analysis, last year has been the fastest 12-month increase in U.S. home prices in 45 years. The demand for housing in the San Diego and San Francisco Bay Area are strong, and home buyers have increased their bids, even adding up to anywhere between $100,000 to $1 million higher than the original price.

Since the outbreak of COVID-19, more than two years ago, in addition to the phenomenon of soaring new and used cars in the auto market, the housing market also has a fever.

In the San Francisco Bay Area, and a typical single-family house is sold for almost 6% more than the owner's original asking price. According to figures tracked by the California Association of Realtors since 1995, it has never been this high. At the end of last year, the average price of this type of home was $1.25 million. San Diego area also experiencing a similar housing market.

The rush to bids was even worse in certain locations, with houses in downtown San Francisco selling for an average of 21 percent above the asking price, and Santa Clara County, Silicon Valley, where the average final price was 17 percent above the asking price. And the house was sold almost within 7 days of listing, which also set a record for the "fastest home sale in history" according to the California Association of Realtors.

One of the reasons for Bay area housing market booming is because there are many technology jobs in the San Francisco Bay Area, mainly in Silicon Valley, the future is promising, and the demand for buying a house is very strong.

In real estate, "fishing strategy" has been an effective strategy in the housing market. The seller offered a lower price than the market price, allowing more people to bid and bid up the price, and the final transaction price of the house would still be reflected market conditions.

Take a house in Palo Alto that was listed for sale last year as an example, with a land area of ​​6,000 square feet (about 169 ping) and a built-up ping of 1,700 square feet (about 48 ping). The seller asked for $2.45 million, and the final transaction price was $3.7 million.

"If the price of a three-bedroom, one-bathroom old single-family house in Silicon Valley is more than $200,000 lower than the market price, it is likely that more than 30 people will be interested.”, a n experienced real estate agent said “buyers from overseas, or those with deep pockets who do not understand the California housing market need to do their homework before throwing their money in.”

While millennials are looking for their first home, many are worried that the interest rate on mortgages in the United States will increase due to inflation, coupled with the volatility of the U.S. stock market, and more people will put their money into real estate, but there are not so many listings.

The markup competition is frustrating many people in need of a house. According to the California Association of Realtors, there were 40 percent fewer listings on the market in January than at the same time two years ago. Home prices in the U.S. are climbing faster than average incomes, and at the end of last year less than a quarter of households in the San Francisco Bay Area could afford to buy a home, and nearly half the number of people who could afford it at the same time in 2012.

In a current housing market, whether you can buy a house most of the time depends on whether you have sufficient cash, high self-contained funds, and the courage to "make a quick decision", otherwise you may be out of the game at the starting point of this wave of buying a house.

(Source: Central News Agency)

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